The basics of Business Law. Concepts every business person should be aware of. Every other slide is a personal photo that I added to make this presentation more palatable. ENJOY

1. Business Law Basics:
What Every Businessperson
Should Know
By Salene Mazur Kraemer, Esquire, MBA, CTP-D
603 Washington Road, Suite 500
Pittsburgh, PA 15228
Phone: 412.427.7075 Fax:1-888-718-6752
www.mazurkraemer.com
salene@mazurkraemer.com
1MAZURKRAEMER LAW GROUP

2. Overview
• Getting Started
• Corporate Formation &
Formalities
• Hiring Employees or
Contractors
• Regulatory Compliance
• Raising Money
• Intellectual Property
• Corporate Counseling
• Contract Drafting &
Review
• Product Liability,
Warranties, Advertising
• Business Torts
• E-Commerce
• Exit Strategies
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3. MAZURKRAEMER LAW 3
2015- Fall. Me with
little people at South
Park

4. A. Getting Started
• 1. Leave Current Employment
• 2. Startup, Acquisition
(stock or assets), Franchise
• 3. Business Plan
• 4. Location Selection
• 5. Hiring Professionals
• 6. Choose Business Entity
• 7. Forming the Board
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5. MAZURKRAEMER LAW 5
2015 Year End MazurKraemer Firm Collage

6. Leave Current Employment
• Covenant Not to Compete
• Trade Secrets
• Invention Assignment Agreement
• Misappropriation of Company Resources
• Non-Solicitation Agreement
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7. MAZURKRAEMER LAW 7
Tilt Room Band Photo Shoot Chihuly Museum
Mary
Beth
Green
Photo
Shoot
Deer
Valley X
Country
Skiing

8. Location Selection
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•Office share
•Commercial
lease
•Buy property
•Virtual office
•Location
visibility

9. Choose Business Entity
• Sole Proprietorship ***
• C Corporation
• S Corporation ***
• Partnership
• Limited Partnership (who is the GP and who is
the LP) ***
• Limited Liability Limited Partnership
• Limited Liability Company ***
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10. MAZURKRAEMER LAW 10
TINY

11. Considerations
• Number of Owners
• Type of Owners
• Personal Liability Protection
• Tax status
• Governing Agreement
• Flexibility re: management/governance
• Flexibility re: profit/loss allocations, as well as
cash distribution
• Securities concerns- additional investors?
• Liquidation of entity
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12. Halloween 2015 –Keira and Jackson
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13. Hiring Professionals
• Accountant
• Graphic Design Artist
• Website developer/hosting
• IT consultant
• PR firm/social media
consultant
• Insurance
• Banker
• Lawyer (Corporate, IP, FDA, etc. )
• Printer
• Benefits Company
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14. MAZURKRAEMER LAW 14
Play
Guitar since
age 15

15. B. Corporate Formation Documents
• Articles or Certification of Incorporation or Formation or Partnership
• Written Consent of Sole Incorporator
• Unanimous Consent of Board of Directors
• Corporate Minute Book
• Stock Certificates
• Docketing Statement
• Application for EIN
• Name Reservation in State Incorporated and Where Intend to Do Business
• Fictitious Name Filing
• Certificate of Authority to Do Business in Other States
• Publication of Authority to Do Business in State
• Voting Agreements,
• Necessary Tax Forms
• Shareholders Agreement, Partnership Agreement, Operating Agreement
• Buy-Sell Agreement
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16. MAZURKRAEMER LAW 16
Mom and Sister and MIL

17. C. HR Issues-
Hiring Employees & Contractors
• Employment Agreements
• Consulting Agreements
• Covenant Not to Compete
• Policy/Handbook
• Discrimination Prevention
• Pre-employment application/screening
• Wrongful discharge v. employee at will
• Equity compensation
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18. MAZURKRAEMER LAW 18
Lawyer Stuff

19. Employee v. Independent Contractor
• TEST IC: 1) control the outcome of a piece of
work and the means and manner of achieving the
outcome; 2) Offer services to public at large, not
just one business
• IMP: employer does not have to pay social
security or Medicare, unemployment insurance
or workers’ comp for employee, no benefits, no
retirement
• Lower paid, lower skilled often considered
employees
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20. MAZURKRAEMER LAW 20
Brother Nathan
Disney 2014

21. Important Legislation
• Civil Rights Act
• OSHA
• National Labor Relations Act
• ADA
• Age Discrimination
• Family Medical Leave Act
• Fair Labor Standards Act
• EEOC
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22. Mom dance
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23. Reduce Litigation Risk
• Pre-employment recruiting materials
• Careful interview and screening process
• Consistent job evaluations during course of
employment
• Have written employment or independent
contractor agreements
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24. MAZURKRAEMER LAW 24
Dad!!
Love of
Sports

25. D. Regulatory Compliance
• Local, state (foreign or domestic), federal level
• Zoning approval, permits and licenses
• Insurance
• Government
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26. MAZURKRAEMER LAW 26
Life Long Friends

27. E. Raising Money
• Business plan
• Private placement memo
• Stock Purchase Agreement/Subscription
Agreement
• Securities Compliance (both Federal and States)
• Loan agreements (term v. revolver v. secured)
• UCC filings, Security Agreements
• Guaranty agreements
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*Private investors (self, friends, family, angel
investors)
*Venture capital financing
*Credit (term loan or revolver)
*Strategic alliances, joint ventures
*Loan funds
*Issue common stock, preferred stock,
bonds
Sources:

28. NYC impromptu
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29. F. Intellectual Property
• Basic Forms
– Patents
– Trademarks
– Copyright
– Trade Secret
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30. MAZURKRAEMER LAW 30
St. Paul’s Parish- WEIRTON WV

31. IP Issues Continued
• Trade Secret Proprietary Information Program
– Confidentiality or non-disclosure agreements
– Non-competition and non-solicitation agreements
– Invention Assignment Agreement
• Trademark, Service Marks-brands, logos, packaging or
designs that are used to distinguish its goods and services
• Registered Internet domain name
• Copyright for text, graphic, software, audio or film
materials, such as manuals or promotional or training
materials
• Licensing Agreements
• International?
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32. MAZURKRAEMER LAW 32
Weirton Collage
for United Way

33. G. Corporate Counseling
• Board Formation
– Legally required
– Selection, number, frequency of meeting, diversified,
outside v. interested, compensation
– Synergy, credibility
– Fiduciary Duty of Care to corporation and shareholders
(BIOTC)
• Duty of Loyalty (no self-dealing, no usurp corp opportunity)
• Duty of Care (“reasonable man” test)
• Business Judgment Rule (disinterested, informed, shifts burden)
– D&O Insurance
• Indemnity Agreement (officers)
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34. MAZURKRAEMER LAW 34Weirton-First Photo Project

35. H. Contract Drafting & Review
• Commercial Property Leases
• Equipment Leases
• Agreements of Sale for Property
• Loan Agreements
• Sale of Goods (Supply Agreement, Distribution Agreement,
Purchase Order)
• Engagement letters
• Customer Contracts
• Consignments
• Management Agreement
• Requirements and Outputs Contracts
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36. MAZURKRAEMER LAW 36
Me-Age 11

37. Contract Law Basics
• Basic elements (offer, acceptance, consideration)
• UCC v. Common Law
• Contract theories (breach of contract, unjust
enrichment, promissory estoppel, restitution)
• Oral, written, implied
• Statute of Frauds (goods over $500, real property,
contract longer than 1 years, pre-nup,
assumption of debt)
• Remedies
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38. MAZURKRAEMER LAW 38
Entrance Turnstile-
Weirton Steel

39. Remedies
• $ or Equitable (specific performance,
injunction, recission)
• Expectation
• Reliance
• Restitution
• Consequential (foreseeable)
• Liquidation
• Punitive
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40. Working parenthood
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41. Material Contract Terms
• Who are the parties?
• Duties and Obligations
• Payment Terms
• Duration
• Termination
• Warranties and Representations
• Indemnification
• Boilerplate provisions
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42. MAZURKRAEMER LAW 42
Keira cut her hair off 2 days after this
picture

43. Boilerplate Provisions
• Notice provisions
• Governing Law
• Waiver of Jury Trial
• Amendment
• Assignment
• Attorneys’ Fees
• Litigation v. Arbitration or Mediation
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44. MAZURKRAEMER LAW 44KENNYWOOD

45. I. Product Liability, Warranties,
Advertising
• Warranties (express (not puffing), implied
warranty of merchantability, implied warranty of
fitness for a particular purposes)
– Limitation of Liability, AS IS clauses
• Products liability for defective products sold in
dangerous or defective condition (strict liability,
chain of distribution, design defect, warnings)
• False or Misleading Advertising
• Successor Liability
• Defenses (comparative fault, assumption of risk)
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46. MAZURKRAEMER LAW 46
Lebo Halloween Parade in front of PGH Office for MAZURKRAEMER

47. J. Business Torts
• Negligence (duty of care, breach, cause,
damages)
• Intentional Torts (false imprisonment, IIEM,
defamation, appropriation, trespass, nuisance,
fraud/misrep, conversion, interference with K’l
relations, unfair competition)
• Vicarious Liability/respondeat superior
• Strict Liability (ultrahazardous and products)
• Toxic Torts (exposure to harmful substances)
• Defenses, Damages, J/S Liability, Contribution
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48. MAZURKRAEMER LAW 48
Plants at PGH Zoo

49. K. E-Commerce
• Basic terms of use (favorable linking, information
usage, disclaimers, liability limitation, dispute
resolution and forum selection provisions)
• Clickwrap agreements
• Passive or "brochureware" website vs. selling
goods or services online
• Cookies Permission
• Data security
• Illustrations or photos
• Restricted territories
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50. MAZURKRAEMER LAW 50
Sunset Hills, MT LEBO

51. Exit Strategies
• Bankruptcy
• Sale- whole or in part
• Liquidate and Dissolve
• Reorganize
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52. Phone: 412.427.7075 Fax: 1-888-718-6752
www.mazurkraemer.com
salene@mazurkraemer.com
52MAZURKRAEMER LAW